How Morocco is shaping its venture capital ecosystem

Casablanca, Rabat, Benguerir or Tangier: a new economic language is taking hold. People now speak of pre-seed, seed, Series A, product–market fit, traction, and scale-up.

This vocabulary, long associated with Silicon Valley, London or Paris, is gradually embedding itself within Morocco’s entrepreneurial ecosystem. The shift is far from anecdotal.

It reflects a deeper transformation: that of a country which has historically built its economic dynamics around tangible assets (particularly in real estate, infrastructure, industry and trade) and is now beginning to view innovation as a strategic asset.

In a global context marked by accelerating technological change, rising concerns over digital sovereignty, and international competition for talent and capital, venture capital is becoming both a financial tool and an instrument of economic policy.

“Morocco is gradually laying the foundations for a solid venture ecosystem,” summarises Salma Benaddou Idrissi, managing partner at Kalys Ventures, a Casablanca-based venture capital fund. The statement captures the state of the market well: still young, still structuring itself, but with fundamentals that are beginning to consolidate.

In Morocco, venture capital remains a relatively recent asset class. Unlike traditional private equity, which invests in mature companies with predictable cash flows, venture capital funds start-ups from their earliest stages. The logic is simple: accept a high failure rate in order to capture a few trajectories capable of generating outsized returns.

But this model requires a profound cultural shift. “Venture capital demands a different mindset, a different tolerance for risk, and the ability to think over longer time horizons,” Benaddou Idrissi notes.

This view is shared by Mohamed Benboubker, founder and co-CEO of Arrabet Holding, a group specialising in digital solutions, who has been observing the Moroccan market’s evolution for years: “There is real curiosity, but maturity has not yet followed,” he explains.

“Over 15 years, I have observed the same gap: investors look for tangibility and short-term returns, while venture capital requires accepting ambiguity and the long term.” In his view, this gap can only be bridged through examples.

“This gap is bridged through examples,” he insists. It is within this logic that Arrabet Holding is now structuring Arrabet Ventures, conceived as a tool for non-organic growth to accelerate through mergers and acquisitions and reach critical scale by 2030.

Start-ups seen as traditional SMEs

Historically, Moroccan investors prioritise visibility, guarantees and proven business models. The idea of investing in a company that is not yet profitable—sometimes not even stabilised—remains counterintuitive for part of the market.

The need for education is therefore immense. Valuation, dilution, capital tables, exit horizons, SAFEs, multiples—these are all notions gradually entering discussions between entrepreneurs, family offices, corporates and institutional investors.

But responsibility does not lie solely with investors. “Investors still read a tech start-up as if it were a traditional SME (assets, margins, immediate profitability). And many entrepreneurs do not know how to craft a hyper-scale story that truly makes people want to bet on them,” Benboubker observes.

“The market needs both: entrepreneurs who can demonstrate value, and investors who learn to read differently.” As in most emerging markets, the structuring of Morocco’s venture capital ecosystem has been driven first by public momentum. In recent years, several institutions have acted as catalysts.

The Mohammed VI Investment Fund, Tamwilcom, CDG Invest, as well as the Ministry of Digital Transition and Administrative Reform, have introduced multiple support mechanisms.

Their objective is clear: reduce perceived risk, attract private investors, and create a ripple effect. In emerging markets, signals sent by the state play a decisive role. International capital first watches local dynamics before committing. “International capital never comes first; it follows local momentum,” Benaddou Idrissi recalls.

A recent example is the launch of a programme worth 2.5 billion dirhams to address the “missing middle”—the funding gap between seed and Series A/B. While early-stage financing is becoming more structured, mid-sized tickets remain scarce.

The ecosystem is also becoming more professional with the emergence of new funds. Kalys Ventures, created in 2022, focuses on early-stage investments and has already made seven investments across Morocco, Senegal, Tunisia and Cameroon in sectors such as fintech, mobility, logistics, retail tech, cybersecurity and SaaS.

Another particularly dynamic player is UM6P Ventures, the investment arm of Mohammed VI Polytechnic University. Founded in 2019, it claims over 27 investments and has established itself as a key actor in verticals such as deeptech, agritech, healthtech, climate tech and greentech.

Its portfolio notably includes Chari, WafR, Terraa and Atarec. 212 Founders, launched by CDG Invest, combines acceleration and funding. It has supported dozens of Moroccan and African start-ups with the ambition of creating regional scale-ups. Meanwhile, Al Mada Ventures, backed by the pan-African group Al Mada, brings greater investment capacity and a continental perspective to the market.

Beyond funding, expectations of venture capital have evolved significantly. “Funding is the easiest part,” says Benboubker. “What is really expected is access to networks to accelerate market entry, strategic perspective to challenge decisions, and credibility by association to open the right doors.”

This is particularly strategic in the context of external growth or regional expansion. “In our non-organic growth strategy at Arrabet, that third lever matters as much as capital,” he adds, before concluding: “A venture capital firm that only brings money in 2026 is a missed opportunity for both sides.”

Exits to scale up

This structuring is taking place in a rapidly changing global context. After the post-Covid euphoria of 2020 and 2021—marked by record valuations and massive funding rounds—the global market underwent a sharp correction between 2022 and 2024. Rising interest rates, renewed focus on profitability, and declining valuations led investors to tighten their criteria.

In 2025 and 2026, several major trends are reshaping the global venture capital landscape. Generative artificial intelligence is attracting a significant share of capital, whether in infrastructure, software or business applications.

Deeptech is regaining interest, as is climate tech, driven by the energy transition, water management and smart agriculture. Cybersecurity has become a global priority with the multiplication of cyberattacks, while technological sovereignty is emerging as a strategic concern for states.

Morocco has strengths in several of these verticals. Agritech, in a context of water stress, renewable energy, fintech and cybersecurity are among the sectors where the Kingdom could stand out. One major challenge remains: scaling up.

While creating a start-up is becoming more accessible, growing it remains difficult. Many Moroccan start-ups manage to validate their model locally, but few succeed in raising $5–10 million to accelerate.

Another key constraint is the lack of exits. A mature venture ecosystem depends on liquidity. Morocco still records few large acquisitions, few IPOs, and few landmark exits. Yet these operations play a central role: they reassure investors, recycle capital and create role models.

Finally, the Moroccan diaspora could play a decisive role. In Paris, London, Montreal, Dubai or San Francisco, Moroccan talent operates in more mature ecosystems, bringing capital, networks, operational expertise, and international credibility.